Moderna’s coronavirus vaccine was more than 94% effective during a late-stage trial
Preliminary coronavirus vaccine data from Moderna lifted investor sentiment sending Wall Street stocks higher overnight amid expectations of a stronger economic recovery. The pharmaceutical company said its coronavirus vaccine was more than 94% effective during a late-stage trial. As a result, the Dow jumped 1.6%, the S&P 500 gained over 1%, and the Nasdaq Composite gained 0.8%.
Asian stocks were mixed on Tuesday as market optimism over a vaccine started to wane amid the ever-increasing number of COVID-19 cases globally and worries over vaccine productions and delivery. As such, Japan’s benchmark Nikkei 225 rose 0.4% after reaching a fresh 29-year high during the session.
Australia’s S&P/ASX 200 gained just 0.1%, South Korea’s Kospi shed 0.15% while China’s Shanghai Composite was 0.20% lower.
In Europe, equities opened flat-to-lower, easing from eight-month highs on Tuesday after a short-lived vaccine-driven rally. German chancellor Angela Merkel noted in the recent statement that virus numbers were too high, and contacts must be reduced. Meanwhile, Merkel’s chief of staff, Helge Braun, said that the country’s government to push for tighter virus restrictions next week.
Elsewhere, the greenback keeps edging lower despite risk sentiment has deteriorated in recent trading. EURUSD climbed to fresh one-week highs around 1.1875, targeting the 1.1900 barrier ahead of fresh economic data out of the United States including retail sales. USDJPY dipped back below the 20-DMA and clipped to a one-week low of 104.25 during the European hours as the safe-haven yen demand persists.
In other markets, Brent crude struggles to see further gains after a short-lived spike to $44.65 seen yesterday. OPEC+’s technical meeting finished with widespread support for a three-to-six-month extension of the current level of oil production cuts. However, the outcome of the meeting failed to trigger a sustained rally amid heightened uncertainty in the global financial markets. As a result, oil prices were rejected from local highs and retreated back below the $44 figure. If the pressure intensifies in the short term, Brent could turn the $43.60 area into resistance.